Consumers' perceived value of luxury goods through the lens of Hofstede cultural dimensions: A cross‐cultural study

Consumer Perceived Value (CPV) is the complete evaluation of the product's usefulness by a consumer according to his perceptions of total obtained benefits compared with the cost that he had to pay for that. Customers purchase similar luxury goods globally, but for different motives and the value held by each customer for these products also changes across different nationalities. The variation in CPV arises mainly because of dissimilarities in culture of different countries. This study uses a framework of Hofstede's cultural dimensions to examine variations in CPV of luxury goods between two rising luxury markets of Saudi Arabia and India. The basic components of CPV of luxury goods were used as the basis for developing the questionnaire. The questionnaires were given through e‐mail to respondents in Saudi Arabia (Arabic version) and India (English version). The data results indicate significant variances in CPV of luxury goods between the two countries. Saudi Arabian consumers turn out to be the greatest patrons of luxury goods whereas Indians display a culture of restraint and controlled gratification of desires. Unlike Saudi consumers, the Indian consumers do not display any significant “bandwagon” or “snob effect”.